Most valuable companies: US giants depend on DAX corporations

As of: 12/28/2021 11:25 a.m.

Apple, Microsoft, Alphabet: the three tech companies alone increased their market value by 2.2 trillion euros in 2021. That is more than all DAX companies combined are worth. US dominance is growing.

The big US companies from the technology sector keep running away from the other corporations. In 2021, the three largest tech companies Apple, Microsoft and Google parent Alphabet increased their value on the stock exchange by 2.2 trillion euros. A look at the German economy shows the big differences: because all 40 groups in the largest share index, the DAX, are worth a total of just 1.86 trillion euros – and thus less than the growth in value of the big tech companies this year.

Even across Europe, there is little change in the superiority. The three big tech players are worth the equivalent of 6.4 trillion euros more than the 50 largest companies in the euro zone. This was the result of an analysis by the “Handelsblatt” on the 100 largest corporations in the world by market value.

Together with Amazon, Tesla and the Facebook group Meta, the picture looks even more drastic. According to data from Factset, the plus of their collective market capitalization in 2021 totaled around 2.56 trillion euros. Market capitalization – also known as the stock market value – is the total value of all shares in a company.

Apple and Microsoft scratched the $ 3 trillion mark that year, and Tesla and Meta hit $ 1 trillion for the first time. “Tech firms entering the $ 1 trillion club are now considered almost like a cup of coffee in Silicon Valley,” Dan Ives, a tech analyst with Wedbush Securities, told CNBC. “It’s no longer the mega-event it was two or three years ago.” The development shows that the big tech companies from the USA are in an incomparable position after the pandemic.

In fact, with the exception of the world’s largest energy company, Saudi Aramco, of the world’s six most valuable corporations, five are American technology companies. They are all worth more than $ 1 trillion, according to the CBNC. According to experts, the US giants could leave the rest of the world behind even further. “Despite higher ratings, we are more positive for the USA than for Europe,” said investment strategist Peter Spijkman from Aegon Asset Management to the “Handelsblatt”. “Tech companies are likely to grow faster than the more traditional sectors over the long term.”

For comparison: According to the newspaper’s calculations, only two companies from Germany made it into the top 100 rankings. SAP, the most valuable German company, is ranked 78th. Siemens is still there. The conglomerate is in 93rd place, followed by the German-American company Linde plc in 77th place.

The “Handelsblatt” lists several reasons for the US dominance: On the one hand, Tesla and Amazon could prove that it can be worthwhile as investors to bet early on in American growth companies that do not make profits for years, but primarily for ideas and expansion stand. In Germany, on the other hand, that doesn’t work – as Delivery Hero shows, for example.

In addition, the economy in this country is characterized by medium-sized companies and industry. This structure is not necessarily popular on the stock exchange. Recently, some large corporations such as Aldi or Bosch are not listed and therefore do not appear in the statistics.

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